HR People Pod – Ep 10: Employment Rights Bill special
Oct 11, 2024
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In this discussion, Carl Quilliam, a CIPD Public Affairs Manager, along with former HR director Mel Steel, delve into the UK’s new Employment Rights Bill. They unveil vital changes, such as abolishing the two-year wait for unfair dismissal claims and tackling zero-hours contracts. Gareth Neale shares insights from the hospitality industry, emphasizing the need for better workplace standards, while Oonagh Johnston highlights the implications for various sectors. The conversation underscores the importance of staying informed as these regulations evolve.
The Employment Rights Bill proposes significant changes like removing the two-year qualifying period for unfair dismissal, impacting employer-employee relationships.
Transitioning from zero-hours contracts to guaranteed-hours contracts aims to protect workers from exploitation while ensuring clarity in employment conditions.
Deep dives
Key Aspects of the Employment Rights Bill
The recently released UK government's Employment Rights Bill comprises over 150 pages and aims to establish significant changes in employment law. Among its 28 provisions, the bill highlights mandatory consultations, particularly regarding unfair dismissal and the introduction of new probation periods for employees. For instance, while the current qualifying period for unfair dismissal is two years, the proposed legislation suggests a reduced probationary period, which could likely lead to substantial changes in employer-employee dynamics and hiring practices. The long timeline for these changes allows organizations ample time to prepare for implementation and understand the new requirements.
Consultation Process and Implementation Timeline
The bill's provisions will roll out in a phased manner, giving employers time to adapt to the changes and participate in the consultation process. Expected to begin consultations in 2025, with some trade union provisions arriving sooner, the timeline assures that businesses will not face an immediate influx of regulatory updates. This approach helps organizations plan and make necessary adjustments without overwhelming them with instant compliance demands. While trade unions will benefit from faster implementation of certain provisions, the majority of changes will follow an extended consultation period, allowing for stakeholder input.
The Impact on Zero-Hours Contracts
A significant shift in the bill includes the transition from zero-hours contracts to guaranteed-hours contracts, with a proposed 12-week reference period. This change aims to safeguard employees by preventing exploitative practices, ensuring that after a set period, workers have the right to stable hours. This emphasizes the need for clarity in employment conditions, especially in sectors such as hospitality that have historically relied on flexible contracts. Employers are encouraged to engage in discussions with employees to create mutually beneficial agreements that uphold both flexibility for work and job security.
Heightened Focus on Employer Responsibilities
The bill reinforces the legal responsibilities of employers in areas like sexual harassment, maternity and paternity rights, and statutory sick pay, raising standards across various sectors. Additional provisions aim to protect employees not just from colleagues but also from third parties, giving employers the responsibility to safeguard their workforce comprehensively. Discussions around ensuring proper risk assessments and commitments to fair treatment throughout employees' tenure are highlighted. This enhances workplace protections and places an emphasis on thoughtful implementation of these new legal duties amid already complex employment landscapes.
The UK Government has proposed the biggest overhaul of workers’ rights in a generation. What will this mean for employers and people professionals? Our panel reflects on the Employment Rights Bill announcement, examining the potential impact of the provisions, such as removing the two-year qualifying period for protection against unfair dismissal, probation period changes, ending ‘exploitative’ zero-hours contracts and the role of a new, single enforcement body, the Fair Work Agency.
CIPD Director of Profession David D’Souza is joined by Carl Quilliam, CIPD Public Affairs Manager; Mel Steel, former HR director and interim people and transformation leader; Gareth Neale, Head of HR at Crimson Hotels Limited; and Oonagh Johnston, Group People Director at Vesty Holdings Limited.
Recorded: 11 October 2024
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